The $3 million in RDA funds for downtown improvements is waiting
final word from the City Council. The money is from three
Redevelopment Agency funds of approximately $1 million each and has
been designated by the City Council/RDA for projects designed to
improve the downtown area, to increase business and the quality of
life for residents who want a quaint and charming place to
visit.
The $3 million in RDA funds for downtown improvements is waiting final word from the City Council.
The money is from three Redevelopment Agency funds of approximately $1 million each and has been designated by the City Council/RDA for projects designed to improve the downtown area, to increase business and the quality of life for residents who want a quaint and charming place to visit.
A proposal to renovate the Granada movie theater is getting the most interest, possibly because it is the most visible and considered a keystone to revitalizing the area; helping the theater get up and running again could jump-start nearby businesses.
When the theater closed in August 2003, nighttime business largely closed down with it, except for restaurants and drinking establishments.
At Wednesday’s meeting, the council heard that the Granada project heads the list for the Economic Development Subcommittee – Mayor Dennis Kennedy and Councilman Greg Sellers – and of the Downtown Association – area merchants and property owners.
Brad Jones, owner of BookSmart, Thinker Toys and two other downtown businesses and who has a proposal of his own in the mix, voiced his approval of the direction.
“It was unanimous at the Downtown Association meeting that doing the theater first is the quickest way to help merchants trying to survive in the (economic) downtrend,” Jones said.
Mike Wilkinson is asking for a large loan/small grant mix totaling $1,095,000 to refurbish and restructure the theater. He intends to leave the theater property.
A new project, backed by Ben Fuller, to reuse the old Gunter Brothers Feed Store on Monterey Road just north of Main Avenue, was also received with interest by the council. Sale of the property is in escrow.
Fuller and his partners would renovate the existing granary building into a two-story retail and office site. They seek $363,000 mostly for a short-term loan. There is talk of a second project of a high-density housing development behind the building.
Housing is the critical building block in a vibrant downtown since it provides ready-made customers for local business and increases overall security.
Council is interested in two proposals: Rocke Garcia’s 40-50 unit for sale development planned for Third Street adjacent to the Morgan Hill Times building – which would include retail space – and a San Rafael nonprofit company planning an 80-unit mixed use development (housing and court-related space) between Diana and East Dunne, south of the new courthouse. Garcia is asking between $1.9 million and $2.5 million; EAH is asking between $1.2 million and $6.1 million, both far more than is available.
Council decided to separate the housing proposals and $1 million designated for housing only. That leaves $2 million for the other three projects to share.
Other RDA funds are also available to help affordable or moderate income housing projects.
A fifth proposal, from Jones and his wife and business partner, Cinda Meister, is for $250,000 for tenant improvements to move their book, gift and toy stores into a larger space.
Since council had little time to review the projects, any decision was delayed until the Jan. 19 meeting. There was, however, no doubt of council concern.
“There is an urgency to downtown right now,” Sellers said. “I can’t overemphasize this enough. Lots of businesses are on the verge of leaving and, if we can make a statement, it might help them to stay.”
